Economics Questions

ECONOMICS QUESTIONS 6

EconomicsQuestions

Discussionsof question four

Question1

Advertisementsare all aimed at keeping one from thinking and instead makepurchasing choices based on the emotional responses. Naturally, onedoes not make an informed decision when this happens because one isnot prepared to think beforehand. As a result one will end up makinga buying decision as a result of the advisement that is offered tohim. One is normally passive and does not realize that the buyingprocess is happening. There is no advisement that is more effectivethan the one that evokes an emotional feeling to the buyer (Arnold,2013). The last time I experienced this kind of emotional feeling isin the movie theatre where I ended up buying theatre popcorn,regardless of its unhealthy characteristics and not mentioning theoverpriced tag.

Question2

Advisementis used by monopolistic competition to accomplish two majorobjectives. The first objective is product differentiation wherefirms go to the extents of informing their target buyers the physicaldifferences of those particular goods from the comparable goods.Moreover, firms may also strategize their advertisement by creatingsome perceptions about such differences in the buyer’s minds(Arnold, 2013). When this happens, one can confidently conclude thatproduct differentiation has been achieved.

Secondly,market control can be achieved when a firm successfully convinces thebuyers, that a certain product is better than the competing brands. Afirm could further go ahead and charge higher prices for such goods.This happens because advertisement greatly affects the demand facinga monopolistic competitive company (Arnold, 2013). Thus, one canclearly state that advisement also seeks to influence demand byincreasing it and reducing demand elasticity.

Question3

TheUnited States is an economy that promotes competition because of theimmense benefits. Competition has not only positive impacts to thefinal consumer through quality and fair prices, but also to the wholeeconomy as a whole. Competition reinforces the internal productivityand also the international competitiveness of the business sector(Bensonko, Braetigam, 2010). Such sectors such as automobileindustries have promoted dynamic markets in the United States andalso strengthened economic markets.

Question4

Thegovernment is quick to regulate monopolies and potential monopoliesfor the simple reason of consumer protection. It is important to notethat monopolies have the market power to set higher prices in theirgoods or services than the competitive markets. Thus the governmentmay regulate monopolies through yardstick competition, preventing thegrowth of monopoly power or through price capping (Bensonko,Braetigam, 2010). However, it is important to note such actions havesome setbacks as the monopolies could argue that the government istoo strict and actually hinder them from making profits. This wasexperienced through failed attempts to bring down Microsoft by thegovernment.

Discussionsof question five

Question1

Peoplein the United States have generally started caring about theenvironment. This is due some recent environmental backlash such asthe global warming and other national climatic disasters that evolveout of a neglected environment. Most people in the developedcountries continue to address and explore the issue of sustainabledevelopment to protect and preserve the environment for futuregenerations. As a result, there is recycling of such resources aswater where there are numerous water treatment areas and the use offossil fuels in place of fuel wood (Salvatore, 2009). There are manymovements such as the green movement that is global tree preservationand advocacy movement that is effective in its agenda.

Question2

Dueto population increases, there has been increased depletion ofrenewable resources such as water, vegetation and soils in thedeveloping countries. Poor environmental factors have been attributedto the burden of death, diseases and disability (Salvatore, 2009).The resulting impact to the global map is increase in deaths anddiseases. The environmental factors accredited for such negativeimpacts include, poor water quality, vector-borne diseases, poorambient and indoor quality. One of the reasons why developingcountries have failed in environmental sustainability is the factthat environmental goods and services are usually never marketed. Asa result, they do not have prices that can be compared to the costsand benefits (Salvatore, 2009).

Question3

Inthe society, there is a paradox about the government asking for moretaxes while few people do not want to pay because of increased taxes.To finance additional responsibilities, the United States Treasuryhas limited options, but increasing the taxes people pay into theirsocial security or cutting back on benefits. All of which will meanincreasing the retirement age to 67. These reasons are enough todemonstrate my lack of confidence to the social security program ofthe United States.

Question4

Iam not confident that the social security programs will be runningsmoothly by the time I retire. This is because of the currentworrying statistics. Currently social security is funded by payrolltaxes, and numbers are rising. While the jobs are few, there arenearly 80 million people waiting to retire. As a result, the demandfor benefits will steep rise to the level that the government cannotfinance.

References

Arnold,R. (2013). Principlesof Micro-Economics-7thEdition.Stanford. Cengage Learning.

Bensonko,D, Braetigam, R. (2010). Micro-Economics-4thedition.New Jersey. John Wiley &amp Sons, Inc.

Salvatore,D. (2009).Micro-Economics Theory and Applications.New York. Oxford University Press